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Life Goal Mantras

8 Easy to Follow Financial Mantras

Did you know there are some very simple techniques you can use to manage your money? These mantras can be used by anybody, even by people who don’t have lot of knowledge on financial planning.
Following are 8 financial mantras which may help you manage your money and help create the wealth you aspire for, to meet your Life goals.

Rule of 72

Rule of 72*

Every investor has an ideal dream, which is they want their invested money to double. The rule of 72 is simply, a technique which tells you if you want your money to double in a certain number of years

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5% Rule for Financial Freedom

The 5% Rule For Financial Freedom*

As an investor you will find many products and many options to invest in. The 5% rule says as an investor, you should not invest more than 5% of your total portfolio in any one option alone.

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100 minus your age rule

The 100 Minus Your Age Rule*

Your age is an important factor while considering to invest in high risk assets like equity. To understand this, let us understand the 100 minus your age rule.

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The 10-5-3 Rule

The 10-5-3 Rule*

Another basic mantra on financial planning is the 10-5-3 rule. This rule simply tells you how different asset classes give you different kind of returns.

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The 50-30-20 Rule

The 50-30-20 Rule*

This golden mantra tells you how to manage your monthly income. Your expenses can be bifurcated into needs and wants.

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6X Emergency Rule

The 6X Emergency Rule*

Remember the proverb – Always save for the rainy day. The 6X mantra is all about the rainy day or any emergency which can befall you or your loved ones.

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40℅ EMI Rule

The 40% EMI Rule*

While we always think about saving and growing our money, it is equally important to assess one’s debts or loans.

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The Life Insurance Rule

The Life Insurance Rule*

How much money will your family need if your income stops? The life insurance rule tells you that you should have a life cover which is at least 10 times your current income.

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*The rules stated above are not to be construed as investment advice and readers are suggested to seek independent financial advice before making any investment decisions.

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